A “softening” of bookings on ‘Sunshine Saturday’ is being predicted as consumers tackle the cost of living crisis.
Research by audit, tax and consulting firm RSM UK suggests families will shun staycations in 2024, with fewer organising city breaks or domestic holidays.
A survey of 1,000 consumers showed that less than a third (28%) of families are planning a UK city break and only 27% plan a longer domestic trip this year, down from 40% and 35% respectively last year.
Overall, families are planning to take fewer holidays in 2024 with the highest percentage 33% looking to take an overseas holiday – down from 37% last year – highlighting that the cost of living could be affecting travel plans.
However, the survey also found that just 10% of consumers plan to cut back on short stay trips over the next three months, and 8% plan to cut back on holidays of five days or more in duration.
When compared to other luxuries, such as eating and drinking out, more than a third (36%) plan to reduce eating out, closely followed by takeaways and deliveries (28%), highlighting that travel still remains a priority for some.
RSM UK head of travel Chris Tate said: ‘It’s clear that holidays remain sacred for many, but families look to be cutting back on travel this year as the cost of living plus the astronomical price hikes during school holidays prove too much for many UK families to consider planning a holiday this year; and if they do, it will be to seek out some sunshine.”
Senior analyst Robyn Duffy added: “Travel and tour operators will likely see a softening in year-on-year bookings for this year’s Sunshine Saturday.
“In an environment where consumers continue to feel the pressure on their finances, we anticipate a cooling of demand when it comes to overseas travel this year.
“Particularly if you consider the rising cost of air fares, with prices for air passenger travel last summer 60% higher than pre-Covid, and 19% more expensive than 2022.
“Our survey indicates consumers will still prioritise holidays, but with uncertainty around the outlook for fuel prices in 2024, the trend for higher air fares will persist, and we expect this will ultimately deter some consumers, particularly families, from booking trips.”